KUALA LUMPUR: Tadmax Resources Bhd, which is better known as a property and construction player, has bagged a power plant contract from the Energy Commission that could cost a few billion ringgit.
Tadmax said yesterday it has been awarded the contract to develop a 1,000-megawatt (MW) combined-cycle gas-fired power plant in Pulau Indah, Selangor.
The company is required to rope in Tenaga Nasional Bhd (TNB) for the project, said Tadmax in a statement to Bursa Malaysia yesterday.
No development cost was disclosed but industry observers said a plant with such magnitude could cost RM2.5 billion to RM3.5 billion.
They pointed out that a comparable power project would be the 1,070MW Prai combined-cycle gas turbine (CCGT) plant in Penang by TNB.
The estimated cost of the Prai CCGT was RM2.47 billion when the power purchase agreement was signed in November 2012, they added.
Giving a slightly different perspective, an industry observer noted that Malakoff Corp’s recently-commissioned 1,000MW Tanjung Bin Energy coal-fired power plant in Johor costs about US$1.13 billion (RM4.6 billion).
The plant, which was commissioned in March, was developed by a global consortium comprising United States-based General Electric, Mudajaya Corp Bhd and Shin Eversendai.
In the Bursa Malaysia statement, Tadmax said the plant would be built on its land in Pulau Indah.
“The letter of award is subject to various conditions, including finalising the terms of the agreement relating to the project with relevant parties and further subject to changes arising from negotiations prior to submission to the commission.
“In line with the decision of the government, TNB is to be invited to participate in the project. The board of Tadmax will be deliberating on the letter of award,” said Tadmax.
In a separate filing, the company said the trading of its shares was halted from 11.59am to 2.30pm yesterday in conjunction with the announcement.
Prior to the suspension, the stock was last traded at 46 sen. After resuming trade, Tadmax gained four sen to close at 50 sen, with 16.18 million shares traded.